SMR — NuScale Power Corporation

Summary of NuScale's Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Liquidity: Increased to $1.3 billion at December 31, 2025, up from $754 million at September 30, 2025, and $442 million at the end of 2024.
• Revenue: Reported revenue of $31.5 million for the year, a decrease from $37 million in the prior year, primarily due to reduced revenue from the RoPower technology licensing agreement, partially offset by increased revenue from Fluor's Phase 2 engineering services.
• Operational Cash Flow: Expected to support positive cash flow from operations as projects progress.

2. Strategic Updates and Business Highlights

• NRC Approval: The U.S. Nuclear Regulatory Commission approved NuScale's 77-megawatt electric standard design ahead of schedule, enhancing the company’s competitive position as the only NRC-certified SMR technology.
• Partnership with ENTRA1 Energy: ENTRA1 signed an agreement with the Tennessee Valley Authority (TVA) to supply 6 gigawatts of power, involving the deployment of 72 NuScale Power Modules across 6 plants.
• International Projects: Completed the front-end engineering and design (FEED) study for the RoPower project in Romania, with significant progress towards project financing and site evaluations.
• Innovation Initiatives: Collaborated with Oak Ridge National Laboratory to assess the use of NuScale's SMR technology for chemical plants, showcasing potential applications for process steam and electricity generation.

3. Forward Guidance and Outlook

• Revenue Generation: Anticipated revenue growth from services related to the ENTRA1-TVA PPA and ongoing projects, with expectations of higher revenue compared to the RoPower project due to the larger scale of the TVA plants.
• Operational Readiness: Confidence in supply chain capabilities, particularly with Doosan, which is ramping up production capacity to 20 modules per year.

4. Bad News, Challenges, or Points of Concern

• Revenue Decline: The decrease in overall revenue compared to the previous year raises concerns about the pace of project execution and market demand.
• PPA Delays: While progress has been made, there are uncertainties surrounding the timing of the binding PPA with TVA, which could impact near-term revenue expectations.
• Material Weakness Resolved: A previously identified material weakness in financial reporting has been addressed, but ongoing scrutiny of internal controls remains a focus.

5. Notable Q&A Insights

• Supply Chain Confidence: Management expressed strong confidence in Doosan's ability to meet production commitments, citing the production of 12 modules and plans for increased capacity.
• Impact of NRC Approval: The approval of the 77-megawatt design has positively influenced customer confidence and project pipeline growth.
• Financial Institution Engagement: A major financial institution signed a multibillion-dollar term sheet with ENTRA1, although specific details were not disclosed due to confidentiality agreements.
• Future Revenue Streams: Following the execution of the PPA with TVA, NuScale expects to enter into combined operating license applications and FEED activities, potentially generating more revenue than seen with the RoPower project.

Overall, NuScale is positioned for growth with significant strategic partnerships and a solid liquidity position, but faces challenges in revenue generation and project execution timelines.